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Gold Price News: Bullion Trades Above $1,950 While Markets Await Rates Decisions
Last week gold jumped close to the psychological threshold of $2,000 before slowing down on Thursday and Friday, while the US dollar showed recovery signals. Despite this time, the price of bullion remained above $1,950. Overall, the trend for the gold price still appears positive. Investors are, once again, in a wait-and-see mode. Indeed, we have just entered a week with a very busy macroeconomic agenda that could break the recent low volatility scenario.
The focus will be on central banks, starting with the FOMC meeting on Wednesday, at which the Federal Reserve is expected to announce a rate hike from 5.25% to 5.50% after last month’s pause. On Thursday, the European Central Bank will likely move in the same direction, raising rates from 4.00% to 4.25%, while on Friday morning, the Bank of Japan will hold its traditional conference. Any dovish surprise, particularly from the Fed, could be positive for gold, with good chances of seeing a new attack to the $2,000 mark. Vice versa, if the US central bank opens the door to new raises (after the one already expected by the markets), stocks and gold could be negatively impacted. Read More
Silver Price News: Silver Looks for new Market Drivers to Continue Recovery
Silver prices began the new week just below $25 per ounce. However, the metal experienced a bearish trend in the last two trading sessions, with prices declining shortly after reaching a 10-week high near $25.5 per ounce on Thursday and Friday. Although silver saw an overall loss of around 1.8% last week, the year-to-date and 30-day performances remain remarkably positive, with gains of +3% and +10%, respectively.
Currently, the first support zone for silver is positioned at $24.5, followed by other key levels at $24.1 and $24.2. These areas may act as potential targets for the ongoing decline, which has been accelerated by the recovery of the US dollar in the currency market.
From a technical standpoint, the recent drop does not indicate an inversion but rather a correction following a significant bullish movement. Read More
This is the gold price set up going into the Fed meeting next week
Gold's move has fizzled out after approaching $2,000 an ounce earlier this week on the idea that the Federal Reserve might be close to a peak in rates. And analysts are now gearing up to parse through the Federal Reserve Chair Jerome Powell's comments following a widely expected 25-basis-point hike on Wednesday.
The gold market was reacting to a firmer U.S. dollar after the Bank of Japan signalled that it looks to maintain its ultra-loose monetary policy next week and sees no urgency in adjusting its yield curve control program, said OANDA senior market analyst Edward Moya.
This was in contrast to the Federal Reserve's upcoming meeting Wednesday, during which a 25-basis-point hike is priced in at a nearly 100% chance, according to the CME FedWatch Tool.
"Gold prices are softening as the dollar firms up after reports that the BOJ is leaning towards leaving yield curve control strategy unchanged," Moya said. "The dollar is riding a small wave here, and that is putting gold's third weekly gain at risk."
There is also a risk of a deeper pullback in gold next week, but it largely depends on Powell's rhetoric. Read More
Gold prices under pressure but holding support above $1,950 as U.S. flash PMI shows muddled economic picture
Gold prices are holding a relatively neutral line above support at $1,950 an ounce as preliminary PMI data shows a muddled picture of U.S. economic activity.
Monday, the S&P Global Flash U.S. manufacturing PMI data remained in contraction territory but rose more than expected to 49.3, following June's reading of 46. According to consensus estimates, economists were looking for a relatively unchanged 46.1.
The report said that activity in the service sector has risen to a three-month high.
Meanwhile, the service sector PMI lost momentum, falling to 52.4, down from last month's reading of 54.4. Economists were looking for a reading of around 54.4.
The report said that activity in the service sector has dropped to a five-month low.
The mixed economic data is not providing any bullish momentum for the gold market; however, prices are managing to hold support above $1,950 an ounce. August gold futures last traded at $1,961.90 an ounce, down 0.26% on the day. Read More
Gold, silver weaker as USDX continues its rebound
Gold and silver prices are moderately lower in midday U.S. trading Monday, pressured by the U.S. dollar index continuing its recovery after hitting a 15-month low last week. Focus of the marketplace is on a key central bank decision at mid-week. August gold was last down $4.50 at $1,962.00 and September silver was down $0.245 at $24.61.
The U.S. data point of the week is the Federal Reserve's Open Market Committee (FOMC) meeting that begins Tuesday and ends Wednesday afternoon with a statement. Most market watchers believe the Fed will raise the main U.S. rate, the Fed funds rate, by 0.25%. As usual, the marketplace will closely scrutinize the FOMC statement and Fed Chair Powell's remarks at his press conference for clues on the trajectory of Fed monetary policy in the coming months.
A Barron's news headline today reads: “Tech earnings, Fed rate call, inflation data—expect crucial answers this week."
Technically, August gold futures bulls have the slight overall near-term technical advantage but need to show fresh power soon to keep it. Prices are in a three-week-old uptrend on the daily bar chart, but just barely. Bulls' next upside price objective is to produce a close above solid resistance at $2,000.00. Bears' next near-term downside price objective is pushing futures prices below solid technical support at the June low of $1,900.60. First resistance is seen at today's high of $1,969.80 and then at Friday's high of $1,975.90. First support is seen at last week's low of $1,958.10 and then at $1,950.00. Wyckoff's Market Rating: 5.5.
Image Source: Kitco News
September silver futures bulls have the overall near-term technical advantage. A four-week-old price uptrend is in place on the daily bar chart. Silver Bulls' next upside price objective is closing prices above solid technical resistance at $26.00. The next downside price objective for the bears is closing prices below solid support at $23.00. First resistance is seen at today's high of $24.89 and then at $25.00. Next support is seen at today's low of $24.425 and then at $24.00. Wyckoff's Market Rating: 6.0. Read More
Image Source: Kitco News
Hedge funds testing gold waters as bullish sentiment hits 18-month high
Expectations that July will be the Federal Reserve's last rate hike in its most aggressive tightening cycle have emboldened hedge funds to jump back into the gold market, even as some are starting to second-guess the newfound optimism.
The CFTC's disaggregated Commitments of Traders report for the week ending July 18 showed money managers increased their speculative gross long positions in Comex gold futures by 23,250 contracts to 147,644. At the same time, short positions fell by 9,625 contracts to 32,326.
The gold market is now net long by 115,318 contracts, and bullish speculative positioning has pushed it to its highest level since early March 2022. During the survey period, gold prices rallied to a seven-week high, testing resistance around $1,980 an ounce.
The rally came after weaker-than-expected June consumer inflation data. In reaction to the inflation numbers, some market participants suggested that the Federal Reserve now has room to end its aggressive tightening cycle.
However, gold has been unable to hold last week's gains as it now tests support above $1,950 an ounce. Stubborn core inflation and a robust labor market supporting higher wages could force the U.S. central bank to maintain its aggressive stance longer than expected. Read More
Live From The Vault - Episode: 132
The secret to growing gold wealth in any market Feat. NorthStar & BadCharts
In this week’s episode of Live from the Vault, Andrew Maguire is joined by Patrick Karim and Kevin Wadsworth from NorthStar & BadCharts, a technical analysis and ratio trading platform, who reach out to the Kinesis community with a special offer.
The two chart trading veterans explain how their combined experience helps them to predict the future events of gold and silver markets with a highly-accurate scientific approach, and explain how to increase wealth even when prices go down.
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Disclaimer: These articles are provided for informational purposes only. They are not offered or intended to be used as legal, tax, investment, financial, or any other advice.
